Dibbs 2022 NFT Sentiment Report
We tapped users of our blockchain-based collectibles marketplace to uncover first-of-its-kind...
With almost 60% of avid sports fans participating in NFT (non-fungible token) trades, the time is now to bring your own sports brand to Web3. Thankfully, you don’t have to go it alone; tons of new sports NFT companies are coming along for the ride, each with a unique spin on how to capture this growing market. Before we get into breaking down five of the most promising examples, let’s define what we mean when we talk about “sports NFT companies.”
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Sports NFTs are unique, one-of-a-kind digital tokens that may represent real-world sports merchandise, digitally-native assets, or some combination of the two. Much like numbered and graded sports cards, each NFT is unique and cannot be duplicated. That makes NFTs an ideal format for managing sports collectibles in the digital sphere, such as tickets, memorabilia, and beyond.
By association, sports NFT companies are businesses that facilitate the trading of sports NFTs. They may mint the tokens, sell them on public marketplaces, or host tools for communicating with token holders. Whatever the service, sports NFT companies can be a vital resource for athletes and brands who want a trusted partner with the expertise needed for making money on the blockchain. To find out more about how this new way of doing business can support athletes and sports brands, get in touch with Dibbs today.
NBA Top Shot was among the first sports NFT companies to break into this growing market. Top Shot opened for business in 2020 and ever since then, has traded in "Moments" — short video clips that present unique highlights from various NBA games. Once acquired, these Moments can be traded or resold on NFT marketplaces, much like how collectors manage physical basketball card collections.
Any new Top Shot customer can buy drop packs with a randomly assembled collection of Moments or buy Moments directly at market value. Each collectible is ranked from common to legendary based on the athlete, historical significance, and overall wow factor of a given play. NBA Top Shot first came to widespread attention when a Moment depicting a LeBron James dunk sold at auction for $387,600. Today, similar sales can surpass the $1 million mark.
Sorare ranks among the most successful sports NFT companies thanks to its clever combination of two well-known activities: card trading and fantasy sports. When a customer first arrives on the site, they may “scout” for officially licensed player cards that vary in value depending on their overall performance. Then, as their collections grow, owners can assemble these cards into decks — or lineups — that earn points and rewards throughout each season based on their performance.
Combining fantasy sports with digital card collections is a fantastic concept and partners have flocked to the company to get on board. Sorare currently licenses cards from all NBA and MLB teams, along with an additional 300 football clubs. This reach helped Sorare earn a $4.3 billion corporate valuation and an estimated yearly revenue of $29 million.
Where most sports NFT companies deal in digital collectibles, Fanzone Sports Club grants access to a private online community. A customer's first purchase is a newly-minted NFT pass, granting access to exclusive benefits from one of three membership tiers. Each pass includes admission to in-person community events, a private Discord server, digital fan experiences with sports stars, and more. If you’re fortunate enough to acquire a Black or Diamond pass, you’ll also win access to free merchandise, game tickets, and more.
While each pass includes sports NFT pre-sale offers, they also act as their own digital assets that owners can trade on the marketplace. Thanks to the prominent backing of athletes like FIFA's Per Mertesacker, the passes may become even more valuable over time.
Founded in 2009, Enjin was one of the first companies to operate in the blockchain space long before the public was aware of NFTs or even Bitcoin. As cryptocurrency expanded, Enjin diversified to address a growing range of use cases, including sports NFTs.
Rather than offer a single product, Enjin creates the tools to develop and manage token collections. Its products include the in-house Efinity blockchain, a first-party crypto wallet, a software and game development platform, and other resources. Most importantly, these tools are code-free and require minimal technical expertise to launch. This makes it far easier for teams and clubs to take a direct hand in minting tokens or connecting with sponsors.
We can’t end a blog on successful sports NFT companies without discussing Dibbs. Our specialty is partnering with brands to tokenize physical collectibles — such as sports cards, jerseys, posters, and many more — and sell them as NFTs.
We handle every step of the process, from storing and vaulting the physical assets in our secure facilities to setting up the token drops (complete with smart contracts that allow for recurring revenue for your brand years down the line). Your fans get new ways to engage with your brand, and you get new revenue streams from assets you already own. If you’d like to learn more about how Dibbs can go to work for your sports brand, set up a demo today.